Set-Off & Carry Forward Of Losses

Q.1 Mr. Ram, a resident Individual aged 65 years, submits the following details of his income
for the assessment year 2024-25 :

Particulars Amount Amount

Loss from speculative business 30,000
Income from speculative business 1,50,000
Loss from specified business covered under section 35AD 20,000
Income from Salary (computed) 2,00,000
Loss from let out house property 1,90,000
Loss from cloth business 80,000
Long-term capital gain from sale of urban land 3,00,000
Long-term capital loss on sale of shares (STT not paid) 1,00,000
Long-term capital loss on sale of listed shares in recognized stock exchange 1,50,000
( STT paid at the time of acquisition & sale of shares)
Income from betting (Gross) 80,000
Loss from gambling 8,000
Interest on saving bank deposits 12,000
Interest on fixed deposits with banks 40,000
Compute the total income of Mr. Ram and show the items eligible for carry forward,
assuming that he does not opt for the provisions of section 115BAC. (RTP MAY 23 )

Q. 6 Mr. Krishan, residing in Indore, provides the following information for the financial year
2023-24:

Particulars Amount Amount

Income from textile business 4,60,000
Income from speculation business 25,000
Loss from gambling 12,000
Loss on maintenance of race horse 15,000
Current year depreciation of textile business not adjusted in the income given 5,000
above.
Unabsorbed depreciation of assessment year 2022-23 10,000
Speculation business loss of assessment year 2023-24 30,000
Compute the Gross Total Income of Mr. Krishan for the Assessment year 2024-25 and also
state the losses eligible for carry forward and period upto which such losses can be carried
forward (RTP NOV 2020)

Q. 2 Mr. Kabir, a resident individual aged 45 years, furnishes the following particulars of his income
and other details for the previous year 2023-24:

Particulars Amount Amount

Income from tea business 5,00,000
Losses from sugar business 4,00,000
Dividend from Indian company carrying on agricultural operations (gross) 1,00,000
Agricultural income 55,000
Salary received as a partner from a partnership firm. The same was allowed 4,50,000
to the firm.
 Set-Off & Carry Forward Of Losses
Net annual value of house property 4,20,000
Loss from gambling 1,00,000
Short term capital gains on sale of land 75,000
Loss on sale of shares listed in BSE. Shares were held for 15 months and STT 3,00,000
paid on sale and acquisition
Life insurance premium paid (10% of the capital sum assured) 80,000
Bank interest on Fixed deposit (gross) 55,000
Interest on saving bank account 13,000
The other details of brought forward losses pertaining to A.Y. 2023-24 are as follow:

Brought forward business loss from sugar business 1,00,000

Brought forward short term capital loss 45,000
Brought forward loss from house property 3,00,000
Brought forward loss from maintenance of race horses 60,000
Compute the total income of Mr. Kabir for the Assessment Year 2024-25 and the amount of loss, if
any, that can be carried forward, if he does not opt for section 115BAC. (RTP NOV 22)

Q. 15 Compute the gross total income of Mr. Prakhar for A.Y. 2024-25 and the losses to be carried
forward, from the information given below: (PYP NOV 2022)

Particulars Amount Amount

Income from House Property (computed) ` (-) 70,00 3,60,000
Short term capital loss on shares of a company (-) 18,700
Long term capital gain on sale of agricultural land 6,000
Income from rubber business (plants grown by Mr. Prakhar) 80,000
Loss from garment business b/f discontinued in F.Y. 2019-20 -) 70,000
Loss from betting (-) 5,500
Income from Lotteries ( Net ) 5,460
Q. 3 Mr. Rajesh, a resident individual, furnished the following information in respect of income and
loss earned by him for the F.Y. 2023-24 (RTP MAY 22)
Particulars Amount Amount
Income from Salary 3,40,000
Long term capital loss on sale of shares of Reliance Ltd. STT has been paid both at the (1,15,000)
time of acquisition and sale
Loss from let out property in Delhi (75,000)
Interest on self-acquired property in Mumbai (50,000)
Winnings from lottery tickets 40,000
Cost of acquisition of lottery tickets 10,000
Profit and gains from manufacturing business (after deducting normal depreciation of ` 96,000
10,000 and additional depreciation of ` 4,000)
Long term capital gains on sale of house property 1,40,000
The other details of brought forward losses and unabsorbed depreciation pertaining to A.Y. 2023-24 are as follow:

Particulars Amount Amount

Brought forward business loss from manufacturing business (35,000)
Unabsorbed normal depreciation (10,000)
Brought forward loss from the activity of owning and maintaining the race horses (50,000)
Compute the Gross total income of Mr. Rajesh for the Assessment Year 2024-25 and the amount of loss, if
any, that can be carried forward if he wants to opt for the provisions of section 115BAC for the first time.

Q. 5 Mr. Prakash furnishes the following information for the financial year 2023-24.
 Set-Off & Carry Forward Of Losses
Particulars Amount Amount
Loss from speculation business-X 85,000
Profit from speculation business-Y 45,000
Interest on borrowings in respect of self-occupied house property 3,18,000
Income from let out house property 1,20,000
Presumptive Income from trading and manufacturing business under section 44AD 1,00,000
Salary from XYZ (P) Ltd. 5,25,000
Interest on PPF deposit 65,000
Long term capital gain on sale of Vacant site 1,25,000
Short term capital loss on sale of Jewellery 65,000
Investment in tax saver deposit on 31-03-24 60,000
Brought forward loss of business of assessment year 2018-19 1,00,000
Donation to a charitable trust recognized under section 12AA and approved under 60,000
section 80G (payment made via credit card)
Compute total income of Mr. Prakash for the assessment year 2024-25 also show the loss, eligible to be carried forward.
Assume that he does not opt for section 115BAC. (RTP MAY 2021)

Q. 7 Compute total income of Mr. Mathur for the assessment year 2024-25 from the following
information furnished by him for the financial year 2023-24. (RTP MAY 2020)
Particulars Amount Amount
Salary income (computed) 4,70,000
Loss from self-occupied house property 2,00,000
Loss from let out house property 60,000
Loss from speculation business-X 80,000
Profit from speculation business-Y 40,000
Income from trading and manufacturing business @ 8% 3,50,000
Interest on PPF deposit 95,000
Long term capital gain on sale of Vacant site (Computed) 2,10,000
Short term capital loss on sale of Jewellery 1,50,000
Investment in tax saver deposit on 31-03-2024 60,000
Brought forward loss of business of assessment year 2018-19 5,50,000
Donation to a charitable trust recognized under section 12AA and approved 1,10,000
under section 80G paid by cheque
Enhanced compensation received from government for compulsory 3,00,0
acquisition of land (held for a period of 5 years) in the year 2010
Q. 8 Compute the gross total income of Mr. Avinash from the following information furnished
by him for the year ended 31-03-2024 :
Particulars Amount Amount
Loss from speculative business MNO 12,000
Income from speculative business BPO 25,000
Loss from specified business covered under section 35AD 45,000
Income from salary (computed) 4,18,000
Loss from house property 2,20,000
Income from trading business 2,80,000
Income from owning and maintaining race horses 8,000
Long-term capital gain from sale of urban land 2,05,000
Long-term capital loss on sale of equity shares (STT not paid) 85,000
Long-term capital loss on sale of listed equity shares in recognized stock exchange (STT paid at 1,10,000
the time of acquisition and sale of shares)
(1) Losses from owning and maintaining of race horses pertaining to A.Y. 2022- 2023 Rs 12,000.

(2) Brought forward loss from speculative business MNO 18,000 relating to A.Y. 2021-22.
 Set-Off & Carry Forward Of Losses
(3) Brought forward loss from trading business of ` 12,000 relating to A.Y. 2020-21.

Assume Mr. Avinash has furnished his return of income on or before the due date specified under section
139(1) in all the above previous years. ( RTP MAY 2019 )

Q. 9 The following are the details relating to Mr. Praveen, a resident Indian, relating to the
year ended 31.3.2024: ( RTP MAY 2018)
Particulars Amount Amount
Income from salaries 2,20,000
Loss from House Property 2,50,000
Loss from toy business 1,30,000
Income from speculation business 40,000
Loss from specified business covered by section 35AD 20,000
Long-term capital gains from sale of urban land 2,50,000
Long Term Capital Loss from sale of Listed shares in RSE (STT paid at the time of acquisition & 1,10,000
sale of shares
Loss from card games 32,000
Income from betting (Gross) 45,000
Life Insurance Premium paid (10% of the capital sum assured ) 50,000
Q. 10 Mr. Rakesh Gupta has derived the following income/loss, as computed below, for the
previous year 2023-24: (PYP NOV 2018)
Particulars Amount Amount
Loss from let out house property 2,50,000
Loss from non-speculation business 3,20,000
Income from speculation business 12,45,000
Loss from specified business covered u/s 35AD 4,10,000
Winnings from lotteries (Gross) 1,50,000
Winnings from bettings (Gross) 90,000
Loss from card games 3,40,000
You are required to compute the total income of the assessee for the assessment year 2024-25, showing clearly the
manner of set-off and the items eligible for carry forward. The return of income has been filed on 30-7-2024

Q. 14 Mr. Harsh furnishes the following details for the year ended on 31-03-2024
Particulars Amount Amount
Salary received from partnership firm (the same was allowed to the firm) 8,50,000
Loss on sale of shares listed in stock exchange held for 18 months and the 6,00,000
STT paid on the sale and acquisition
Long term capital gain on sale of land 5,00,000
Brought forward business loss of assessment year 2014-15 6,00,000
Loss of the specified business covered in Section 35AD 3,50,000
Loss from house property 2,50,000
Income from betting (gross) 50,000
Loss from card games 35,000
Q. 11 Mr. X a resident individual submits the following information, relevant to the previous year ending
March 31, 2024:

Particulars Amount Amount

Income from Salary (Computed) 2,22,000
Income from House Property 22,000
House in Delhi (-) 2,60,000
House in Chennai (-) 20,000
House in Mumbai (self-occupied)
 Set-Off & Carry Forward Of Losses
Profit and gains from business or profession 18,000
Textile business (-) 22,000
Cosmetics business (-) 74,000
Speculative business- 1 46,000
Speculative business-2

Capital gains (-) 16,000

Short term capital loss from sale of property Long term capital gains from sale of 15,400
property
Income from other sources (Computed) 34,000
Income from betting 46,000
Income from card games (-)14,600
Loss on maintenance of race horses

Determine the gross total income of Mr. X for the assessment year 2024-25 and the losses to be carried
forward assuming that he does not opt to be taxed under section 115BAC. (PYQ JULY 21)

Q. 13 Following are the details of incomes/losses of Mr. Rishi for the F.Y. 2023-24
Particulars Amount Amount
(Figures in brackets represents losses) `
Taxable salary income (computed) 3,60,000
Taxable income from house property (computed)
- from rented house property X 1,20,000
- from rented house property Y (3,40,000)
Taxable profit from business (computed)
- business P 2,30,000
- business Q (12,000)
- business R (speculative business) 15,000
- business T (speculative business) (25,000)
Taxable Income from other sources :
- from card games 16,000
- from owning & maintenance of race horses (7,000)
- interest on securities 5,000
You are required to determine the Gross total income of Mr. Rishi for Assessment Year 2024-25.
(PYP NOV 2019)